Universities Australia Chair Professor Carolyn Evans
There will be plenty of eye-catching stories coming out of Canberra this week, which will make it easy to miss a reform that is moving through parliament with far less attention, but with deep consequences for Australia’s future: legislation to establish the Australian Tertiary Education Commission.
The ATEC was recommended by the government’s Australian Universities Accord process. In the final report, the panel recognised that universities and other higher education providers had been subject to constant and destabilising changes in policy and funding.
The solution, the panel said, was to establish an apolitical, independent ATEC that could provide expert advice to government, universities and other actors that was based on long-term needs and backed by evidence, not day-to-day politics.
Democratically elected politicians would get to make the final decisions about what changes should be made and what funding is available, but both the government and the public would be better informed about the consequences of government decisions.
Australians should care about this legislation. Why? Because the ATEC, if legislated, will influence how Australia plans its workforce, invests in skills and research, and supports regional growth. It will shape decisions that affect jobs, productivity and living standards. These are things that matter to all Australians, not just those who go to university.
This should serve as a reminder to everyone, especially policy- and decision-makers, that universities are central to the government’s economic and productivity agenda. They educate nurses, teachers, engineers and health professionals to fuel Australia’s most important sectors. They work with industry to translate research into commercial outcomes that lift productivity and competitiveness. They anchor regional economies, supporting jobs and innovation well beyond campus grounds.
A stronger, more productive Australia depends on a strong tertiary education system, and the ATEC is the government’s chosen mechanism to deliver it. But as drafted, the legislation before parliament does not yet match the scale of this ambition. It falls short of creating the independent, expertly resourced and data-driven body recommended by the Universities Accord.
Under the proposed model, the ATEC will have only two full-time commissioners, and one part-time; it will require permission from the minister to investigate important issues; it will not be able to publish its reports without ministerial permission, and; it is limited in its powers to examine critical issues for the sector, including financial sustainability.
The commissioners will not be able to hire staff other than existing public servants, and the secretary of the department will not only make the final decision on staffing but will also determine whether independent experts can be employed on certain tasks.
The last thing Australia needs is another costly layer of education bureaucracy that is subject to political direction.
A properly designed ATEC, on the other hand, could be a significant public asset – one capable of designing and delivering the longer-term reforms Australia’s tertiary education system needs to deliver the pipeline of skilled graduates, and the research and innovation, that will help our country grow and prosper.
At its best, the ATEC would operate at arm’s length from government, providing independent, expert advice on skills needs, workforce capacity and research investment. That independence would support evidence-based decision-making and long-term economic growth, particularly at a time of fiscal pressure and renewed concern about productivity.
Australia already has a proven model for this approach. The Productivity Commission has long delivered rigorous, transparent analysis that informs economic reform and lifts living standards. Its authority rests on its independence and expertise. The ATEC should be designed to operate in a similar way.
For the ATEC to succeed, its advice must be trusted. Government should rightly set broad policy objectives, but the ATEC must have the freedom to provide frank, evidence-based advice without day-to-day direction. That balance is essential if the ATEC is to contribute to sustainable productivity growth rather than become another instrument of short-term budget management.
Independence must also be matched with deep system expertise. Australia’s tertiary education system is diverse. Large research-intensive universities, teaching-focused institutions and small regional campuses all play distinct roles in meeting national and local needs. To be effective, the ATEC must be staffed by people who understand how universities and other tertiary providers operate, and how policy settings affect skills pipelines, research capacity and regional development.
Every university serves a unique community. Advice that overlooks this diversity will not support economic growth or build Australia’s future – in our capital cities or across our regions.
A further critical role for the ATEC should be to provide a single, reliable home for tertiary education data. Australia’s current data landscape is fragmented, limiting the ability to align funding with skills shortages and economic priorities. Independent, high-quality data would strengthen budget decisions, workforce planning and investment in innovation.
On the surface, the ATEC may look like another technical reform. It is anything but. Its design will shape Australia’s tertiary education system and, by extension, Australia’s economic future.
Over time, objective, long-term advice focused on long-term national benefit from an independent ATEC would bring greater stability to a system that has experienced frequent policy volatility. That stability matters for productivity and economic growth. It allows institutions to plan, industries to invest with confidence, and students to make informed choices about their futures. At a time of inflationary pressure and economic uncertainty, getting the shape of the ATEC right is not to be taken lightly. It is a decision that will influence Australia’s prosperity for decades to come, and that’s why it matters to all Australians.
ENDS
